In India, an interim budget is a temporary financial plan presented by the government in an election year. It serves as a bridge between the previous year's full budget and the budget that the new government will present after the elections. Unlike a full budget, it doesn't propose any major policy changes or announce ambitious new schemes. The interim budget is also known as the Vote on Account.
- Continuation of essential expenditures: It authorizes the government to spend money on essential items like salaries, interest payments, and defense until the new government takes office and presents its full budget.
- Maintaining economic stability: It helps maintain economic stability and continuity by avoiding a gap in budgetary allocations during the election period.
- Ensures smooth functioning of government: It guarantees that the government has the resources to carry out its basic functions even during an election year.
- Prevents administrative disruption: It avoids disruption in key government programs and ensures their continued implementation until the new government takes over.
- No major policy changes: As it's a temporary measure, it typically doesn't introduce any major changes in economic or fiscal policies.
- Limited scope: It primarily focuses on routine expenditures and might not address pressing economic issues requiring immediate attention.
- No long-term vision: It lacks a long-term vision and strategic direction for the economy, as it serves as a placeholder until the new government's priorities are known.
Presented on: February 1, 2024
Finance Minister: Nirmala Sitharaman
- INCREASED CAPITAL EXPENDITURE: BUDGET ALLOCATED ?11.11 LAKH CRORE FOR INFRASTRUCTURE DEVELOPMENT, REPRESENTING AN 11.1% INCREASE OVER THE PREVIOUS YEAR.
- FISCAL CONSOLIDATION: GOVERNMENT AIMS TO REDUCE THE FISCAL DEFICIT TO 5.1% OF GDP IN THE NEXT FINANCIAL YEAR (2024-25) AND FURTHER TO 4.5% BY 2025-26.
- NO CHANGE IN TAX RATES: NO CHANGES ANNOUNCED FOR DIRECT AND INDIRECT TAXES, INCLUDING IMPORT DUTIES.
- FOCUS ON KEY SECTORS: INITIATIVES ANNOUNCED FOR FARMERS, YOUTH, WOMEN, AND THE UNDERPRIVILEGED.
- SUPPORT FOR ARTISANS AND ENTREPRENEURS: SCHEMES LIKE PM VISHWAKARMA YOJANA AND PM-SVANIDHI CONTINUED.
- UPSKILLING AND RESKILLING: OVER 1.4 CRORE YOUTH TRAINED UNDER SKILL INDIA MISSION.
- COMMITMENT TO SOCIAL WELFARE: FREE FOOD PROVIDED TO 80 CRORE PEOPLE THROUGH VARIOUS SCHEMES.
- LOWER GOVERNMENT BORROWINGS COMPARED TO THE PREVIOUS YEAR.
- CONTINUED EMPHASIS ON FINANCIAL INCLUSION AND WOMEN EMPOWERMENT.
- NO MAJOR POLICY ANNOUNCEMENTS DUE TO THE INTERIM NATURE OF THE BUDGET.
- INDIA’S REAL GDP PROJECTED TO GROW AT 7.3 PER CENT IN FY 2023-24
- FDI INFLOW DURING 2014-23 WAS USD 596 BILLION, WHICH IS TWICE THE INFLOW DURING 2005-14.
- UPLIFTMENT OF ‘GARIB’ (POOR), ‘MAHILAYEN’ (WOMEN), ‘YUVA’ (YOUTH) AND ‘ANNADATA’(FARMER) IS THE HIGHEST PRIORITY OF GOVERNMENT
- A CORPUS OF RUPEES ONE LAKH CRORE WILL BE ESTABLISHED WITH FIFTY-YEAR INTEREST FREE LOAN FOR YOUTH SCHEME OF 50 YEAR
- INTEREST FREE LOAN FOR CAPEX TO STATES WILL BE CONTINUED THIS YEAR WITH TOTAL OUTLAY OF RS 1.3 LAKH CRORE.
- GOVERNMENT IS WORKING WITH AN APPROACH TO DEVELOPMENT THAT IS ALL-ROUND, ALL-PERVASIVE AND ALL-INCLUSIVE (?????????, ??????????? ?? ???????????)
- THE BUDGET CONTAINES A NUMBER OF ANNOUNCEMENTS AND STRATEGIES INDICATING DIRECTIONS AND DEVELOPMENT APPROACH FOR MAKING INDIA VIKSIT BHARAT BY 2047
- GOVERNMENT WILL PAY UTMOST ATTENTION TO MAKE THE EASTERN REGION AND ITS PEOPLE A POWERFUL DRIVER OF INDIA’S GROWTH
- GOVERNMENT WILL FORM A HIGH-POWERED COMMITTEE FOR AN EXTENSIVE CONSIDERATION OF THE CHALLENGES ARISING FROM FAST POPULATION GROWTH AND DEMOGRAPHIC CHANGES
Note: This is an interim budget, and a full budget will be presented later in the year by the newly elected government.
